(b) The CEO of Oceania National Airways (ONA) has already strongly rejected the re-positioning of ONA as a ‘no
frills’ low-cost budget airline.
(i) Explain the key features of a ‘no frills’ low-cost strategy. (4 marks)
第1题:
(b) Explain the advantages and the disadvantages of:
(i) the face to face interview between two people; (6 marks)
第2题:
Roy Crawford has argued for a reduction in both the product range and customer base to improve company
performance.
(b) Assess the operational advantages and disadvantages to Bonar Paint of choosing such a strategy.
(15 marks)
第3题:
(c) Identify and evaluate other strategic options ONA could consider to address the airline’s current financial and
operational weaknesses.
Note: requirement (c) includes 2 professional marks (10 marks)
(c) Within the strategy clock, ONA might consider both differentiation and focus. A differentiation strategy seeks to provide
products or services that offer different benefits from those offered by competitors. These benefits are valued by customers
and so can lead to increased market share and, in the context of ONA, higher seat utilisation. Differentiation is particularly
attractive when it provides the opportunity of providing a price premium. In other words, margins are enhanced through
differentiation. Air travellers may be willing to pay more to travel with an airline that offers seat allocation and free in-flight
food and drinks.
However, such a broad-based differentiation strategy may be inappropriate for ONA because of the need to service both
business and leisure travellers. Consequently, the potential strategy also has to be considered in the context of the two sectors
that the company perceives that it services. In the regional sector a focused differentiation strategy looks particularly attractive.
Here, the strategy focuses on a selected niche or market segment. The most obvious focus is on business travel and building
the company’s strengths in this sector. This focus on the business traveller might be achieved through:
– Ensuring that flight times are appropriate for the business working day. This is already a perceived strength of the
company. This needs to be built on.
– Providing more space in the aircraft by changing the seating configuration – and the balance between business and
standard class. ONA currently has a low seat occupancy rate and a reduction in seat capacity could be borne.
– Fewer passengers in the aircraft may also lead to improved throughput times. Loading and unloading aircraft is quicker,
minimising the delays encountered by the traveller.
– Providing supporting business services – lounges with fax and internet facilities.
– Speeding the process of booking and embarkation (through electronic check-in), so making the process of booking and
embarkation easier and faster.
– Providing loyalty schemes that are aimed at the business traveller.
Although this focused differentiation is aimed at the business customer it is also likely that particular aspects of it will be
valued by certain leisure travellers. Given the strong regional brand (people from Oceania are likely to travel ONA) and the
nature of the leisure travel in this sector (families visiting relatives) it seems unlikely that there will be a significant fall off in
leisure travel in the regional sector.
In the international sector, the strategic customer is less clear. This sector is serving both the leisure and business market and
is also competing with strong ‘no frills’ competitors. The nature of customer and competition is different. A strategy of
differentiation could still be pursued, although perhaps general differentiation (without a price premium) may be more effective
with the aim of increasing seat occupancy rate. This sector would also benefit from most of the suggested improvements of
the regional sector – providing more space in aircraft, faster passenger throughput, electronic check-in etc. However, these
small changes will not address the relatively low flight frequency in this sector. This could be addressed through seeking
alliances with established airlines in the continental countries that it services. Simple code share agreements could double
ONA’s frequencies overnight. Obviously, ONA would be seeking a good cultural fit – the ‘no frills’ low-cost budget airlineswould not be candidates for code shares.
ONA’s perception of market segmentation, reflected in splitting regional from international travel and distinguishing leisure
from business appears to be a sensible understanding of the marketplace. However, it might also be useful for them to
consider on-line customers and commission customers (travel agents) as different segments. Perceiving travel agents as the
strategic customer would lead to a different strategic focus, one in which the amount and structure of commission played an
important part.
Finally, whichever strategy ONA adopts, it must continue to review its operational efficiency. An important strategic capability
in any organisation is to ensure that attention is paid to cost-efficiency. It can be argued that a continual reduction in costs
is necessary for any organisation in a competitive market. Management of costs is a threshold competence for survival. ONA
needs to address some of the weaknesses identified earlier in the question. Specific points, not covered elsewhere, include:
– Improved employee productivity to address the downward decline in efficiency ratios.
– Progressive standardisation of the fleet to produce economies of scale in maintenance and training. This should reduce
the cost base.
– Careful monitoring of expenditure, particularly on wages and salaries, to ensure that these do not exceed revenue
increases.
Candidates may address this question in a number of ways. In the model answer given above, the strategy clock is used –
as it uses the term ‘no frills’ in its definition and so it seems appropriate to look at other options within this structure. However,
answers that use other frameworks (such as Ansoff’s product/market matrix) are perfectly acceptable. Furthermore, answerswhich focus on the suitability, acceptability and feasibility of certain options are also acceptable.
第4题:
(b) Explain how the process of developing scenarios might help John better understand the macro-environmental
factors influencing Airtite’s future strategy. (8 marks)
(b) Carrying out a systematic PESTEL analysis is a key step in developing alternative scenarios about the future. Johnson and
Scholes define scenarios as ‘detailed and plausible views of how the business environment of an organisation might develop
in the future based on groupings of key environmental influences and drivers of change about which there is a high level of
uncertainty’. In developing scenarios it is necessary to isolate the key drivers of change, which have the potential to have a
significant impact on the company and are associated with high levels of uncertainty. Development of scenarios enables
managers to share assumptions about the future and the key variables shaping that future. This provides an opportunity for
real organisational learning. They are then in a position to monitor these key variables and amend strategies accordingly. It
is important to note that different stakeholder groups will have different expectations about the future and each may provide
a key input to the process of developing scenarios. By their very nature scenarios should not attempt to allocate probabilities
to the key factors and in so doing creating ‘spurious accuracy’ about those factors. A positive scenario is shown below and
should provide a shared insight into the external factors most likely to have a significant impact on Airtite‘s future strategy.
For most companies operating in global environments the ability to respond flexibly and quickly to macro-environmental
change would seem to be a key capability.
The scenario as illustrated below, clearly could have a major impact on the success or otherwise of Airtite’s strategy for the
future. The key drivers for change would seem to be the link between technology and global emissions, fuel prices and the
stability of the global political environment. Through creating a process which considers the drivers which will have most
impact on Airtite and which are subject to the greatest uncertainty, Airtite will have a greater chance of its strategy adaptingto changing circumstances.
第5题:
(c) (i) Explain the capital gains tax (CGT) implications of a takeover where the consideration is in the form. of
shares (a ‘paper for paper’ transaction) stating any conditions that need to be satisfied. (4 marks)
第6题:
(d) (i) Discuss why it may not be possible to provide a high level of assurance over the stated key performance
indicators; and (4 marks)
第7题:
执行如下程序,最后S的显示值为 SET TALK OFF S=0 i=5 X=11 DO WHILE S<=x S=S +i I = I +l ENDDO ?s SET TALK ON
A.5
B.11
C.18
D.26
第8题:
执行如下程序,最后S的显示值为( )。 SET TALK OFF s=0 i=2 x=10 DO WHILE s<一一X S=S+i i=i十l ENDDO ?S SET TALK ON
A.12
B.14
C.16
D.18
第9题:
(a) List and explain FOUR methods of selecting a sample of items to test from a population in accordance with ISA 530 (Redrafted) Audit Sampling and Other Means of Testing. (4 marks)
(b) List and explain FOUR assertions from ISA 500 Audit Evidence that relate to the recording of classes of
transactions. (4 marks)
(c) In terms of audit reports, explain the term ‘modified’. (2 marks)
第10题:
执行如下程序,最后S的显示值为 SET TALK OFF S=0 i=5 X=11 DO WHILE s<=X s=s+i i=i+1 ENDDO ?s SET TALK ON
A.5
B.11
C.18
D.26
第11题:
A.SVIinterface
B.Accessport
C.EtherChannelportchannel
D.Loopbackinterface
E.Routedport
F.BVIinterface
第12题:
A company needs additional storage for a block I/O based database application. The application has low I/O bandwidth requirements across the campus. The customer has a TCP/IP infrastructure and is interested in low-cost products that are compatible with its environment. Which technology is most appropriate for this customer?()
第13题:
(b) Explain what is meant by McGregor’s
(i) Theory X; (5 marks)
第14题:
(ii) Analyse why moving to a ‘no frills’ low-cost strategy would be inappropriate for ONA.
Note: requirement (b) (ii) includes 3 professional marks (16 marks)
第15题:
(b) Good Sports Limited has successfully followed a niche strategy to date.
Assess the extent to which an appropriate e-business strategy could help support such a niche strategy.
(8 marks)
第16题:
Matthew Black is well aware that the achievement of the growth targets for the 2005 to 2007 period will depend on
successful implementation of the strategy, affecting all parts of the company’s activities.
(c) Explain the key issues affecting implementation and the changes necessary to achieve Universal’s ambitious
growth strategy. (15 marks)
第17题:
(b) (i) Explain the matters you should consider to determine whether capitalised development costs are
appropriately recognised; and (5 marks)
第18题:
A.has stood … has already gone
B.has been standing… has already been
C.is standing… has already gone
D.has been standing…has already gone
第19题:
______ is the sending and receiving of the messages by computer. It is a fast, low-cost way of communicating worldwide.
A.LAN
B.Post office
C.E-Mail
D.I-dimension array
第20题:
Jewel Co is setting up an online business importing and selling jewellery headphones. The cost of each set of headphones varies depending on the number purchased, although they can only be purchased in batches of 1,000 units. It also has to pay import taxes which vary according to the quantity purchased.
Jewel Co has already carried out some market research and identified that sales quantities are expected to vary depending on the price charged. Consequently, the following data has been established for the first month:
Required:
(a) Calculate how many batches Jewel Co should import and sell. (6 marks)
(b) Explain why Jewel Co could not use the algebraic method to establish the optimum price for its product.
(4 marks)
第21题:
is the sending and receiving of the message by computer. It is a fast, low-cost way of communicating worldwide。
A.WWW
B.E-mail
C.TFTP
D.TELNET
第22题:
A.Loopbackinterface
B.SVIinterfac
C.Routedport
D.Accessport
E.EtherChannelportchannel
F.BVIinterface
第23题:
Waikie-rider pallet truck provide a low-cost method of materials handling utility.